Exam 10: Noncurrent Assets

Use the information below to answer the following questions: Jacques Ltd purchased a computer for $4500 on 1 July 2009. It had an estimated useful life of 3 years. It was depreciated using the straight-line method. The financial year ends on 30 June. -What was the net book value at 30 June 2011?

Use the information below to answer the following questions: Creep Ltd purchased a machine for $100 000 on 1 January 2010. It has an estimated useful life of 5 years. Creep Ltd’s financial period ends on 31 December. The machine was depreciated using the reducing balance method at 60%. -Squires Ltd purchased equipment for $90 000 on 1 July 2011.It had an estimated life of 200 000 units.The machine was depreciated using the units of production method.The financial period of Squires Ltd ends on 30 June.The estimated number of kilometers travelled was 26,000.What was the depreciation expense for year ended 30 June 2012?

Use the information below to answer the following questions. Delta Ltd purchased a motor vehicle for $45,000 on 1 January 2011. The vehicle was expected to have a life of 3 years and an estimated disposal value of $15,000. The straight-line method of depreciation is employed and the financial year ends on 30 June. -What was the balance of the accumulated depreciation account at 30 June 2012?

Use the information below to answer the following questions: Tanner Ltd purchased an item of equipment on the first day of the financial period, 1 July 2010, for $200 000. The equipment was depreciated using the reducing balance method and a rate of 40%. It was sold on 1 July 2012. -If the machine was sold for $59 000 on 1 July 2011,what was the gain or loss on disposal?

Where there is an asset revaluation decrement that does not reverse a previous increment,the amount is debited to:

When a company discards machinery that is fully depreciated,this transaction will be recorded with which of the following entries?

Which method can result in annual depreciation expense going up and down from period to period?

Which of the following assets can be revalued upwards

Equipment with a cost of $15 000 and accumulated depreciation of $12 500 was sold for $1700.The journal entry to record the disposal would include:

Which piece of information is NOT necessary in order to compute straight-line depreciation?

Use the information below to answer the following questions. Alby Ltd purchased a machine for $32,000 on 1 January 2010. The machine was expected to have a useful life of 4 years. The financial year ends on 31 December. The straight-line method of depreciation is employed. -What was the balance of the accumulated depreciation account at 31 December 2011?

Use the information below to answer the following questions: Creep Ltd purchased a machine for $100 000 on 1 January 2010. It has an estimated useful life of 5 years. Creep Ltd’s financial period ends on 31 December. The machine was depreciated using the reducing balance method at 60%. -What was the depreciation expense for year ended 31 December 2011?

Use the information below to answer the following questions: Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of 4 years. -Consider the following transactions: (i)Equipment with a book value of $100 000 is sold for $130 000 cash. (ii)Land is revalued upwards from $1m to $1.5m.The land has not previously been revalued downwards. Which of the above transactions increases or decreases profits?

Which of the following would NOT be included in the cost of a new building?